A bottom-up model to estimate the energy efficiency improvement and CO2 emission reduction potentials in the Chinese iron and steel industry

Available online 11 December 2012 Publication year: 2012Source:Energy

China’s annual crude steel production in 2010 was 638.7 Mt accounting for nearly half of the world’s annual crude steel production in the same year. Around 461 TWh of electricity and 14,872 PJ of fuel were consumed to produce this quantity of steel. We identified and analyzed 23 energy efficiency technologies and measures applicable to the processes in China’s iron and steel industry. Using a bottom-up electricity CSC (Conservation Supply Curve) model, the cumulative cost-effective electricity savings potential for the Chinese iron and steel industry for 2010–2030 is estimated to be 251 TWh, and the total technical electricity saving potential is 416 TWh. The CO 2 emissions reduction associated with cost-effective electricity savings is 139 Mt CO 2 and the CO 2 emission reduction associated with technical electricity saving potential is 237 Mt CO 2 . The FCSC (Fuel CSC) model for the Chinese iron and steel industry shows cumulative cost-effective fuel savings potential of 11,999 PJ, and the total technical fuel saving potential is 12,139. The CO 2 emissions reduction associated with cost-effective and technical fuel savings is 1191 Mt CO 2 and 1205 Mt CO 2 , respectively. In addition, a sensitivity analysis with respect to the discount rate used is conducted.